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Contract certainty fuels splinter group rumours

Market fears over the shortcomings of Xchanging has forced some players to find an alternative solution to achieving contract certainty in the London market, market sources claimed.

It is believed that a group of senior Lloyd's officials has split from the Market Reform Group (MRG) to resolve the contract certainty issue independently.

"Everybody thinks that achieving contract certainty is a great idea, but there is a concern that Xchanging won't cut mustard," a source said.

Managing agent Amlin rejected claims that it is leading the "splinter group".

It said it was "committed" to working with the MRG and the LMP programme office to find a practical solution to contract certainty.

"This has involved establishing a project steering group, and dedicating resource to work through the options to achieve contract certainty at inception," an Amlin spokeswoman said.

Amlin said it was working with the market "to ensure that we are using similar data to monitor performance, and improving the process by which wordings can be delivered to our customers.

"As part of that process we are trying to develop innovative solutions where we lead business, and to ensure that where we follow, other leading insurers are adopting similar control procedures," said the spokeswoman.

Sources said the group was working with the knowledge of Lloyd's, but that its methods "could lead to a split".

"The firms involved in this still have people sitting in on the LMA Beazley party talks," a source said.